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Bloomberg proposed the policy — which would block restaurants, delis, fast-food chains and movie theaters from selling sugary drinks larger than 16 ounces — last year, arguing that it would help fight climbing obesity rates and bring health costs down. The City Council balked at the plan, but the city Board of Health adopted the proposal anyway.

The state Supreme Court’s appellate division determined in a unanimous ruling that Bloomberg’s effort exceeded the city’s authority because it was enacted without legislative approval. The court also concluded that drinking sugary soda is not inherently dangerous if done in moderation, and therefore, the Board of Health’s decision to restrict it is out of bounds.

Although the city’s Board of Health has broad powers to guard public health, the court noted, the policy also included exemptions for some stores and types of drinks that were based on economics and compromises with business rather than health concerns. For example, the rules contain exemptions for alcoholic drinks, milkshakes, smoothies, mixed coffee drinks and fruit juices, as well as for grocery stores, gas stations and other convenience shops.

“The selective restrictions enacted by the Board of Health reveal that the health of the residents of New York City was not its sole concern. If it were, the ‘Soda Ban’ would apply to all public and private enterprises in New York City,” the court ruled. “We conclude that in promulgating this regulation the Board of Health failed to act within the bounds of its lawfully delegated authority.”

The city’s law department intends to appeal the decision, describing “broad precedent” for the Board of Health to adopt “significant measures” like the sugary drinks restrictions.

“Since New York City’s groundbreaking limit on the portion size of sugary beverages was prevented from going into effect on March 12, more than 2,000 New Yorkers have died from the effects of diabetes,” Bloomberg said in a statement. “Also during that time, the American Medical Association determined that obesity is a disease, and the New England Journal of Medicine released a study showing the deadly, and irreversible, health impacts of obesity and Type 2 diabetes — both of which are disproportionately linked to sugary drink consumption.”

Bloomberg’s effort stoked a national debate about the role of government in dictating health choices. Bloomberg contends that the ban would force consumers to make an active choice about purchasing sugary beverages in large quantities.